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it's sis it's creepy and and then the question comes to you know when we talk
about sort of like the you know that with these two things i mean one
um... they did
it seems to me that there's there's there's two ways you can approach this
in terms of why it's wrong
one is there is you know sort of some notion of rule of law
right i mean
presumably if the uh... these banks even though they don't seem to have any civil
liability according to uh...
uh... this judge in the southern district of new york
uh...
day did settle with the justice department and albeit for
you know the the cost of the new ink in the copiers essentially
uh... bright but but
there must have been sent to me
there must be some grounds some of the legal uh...
uh...
the some legal issue here uh...
so it's it's it's just
breaking the law unscom level
for them to be lying about this stuff
the other thing is that like is
it seems to me that there is now the sort of attitude
that everybody has to buy into
so that they don't freak out that like look
most of this stuff is just a black box
and it really doesn't matter what comes out the other side
if they're scanning or lying and they're doing a ten to fifteen percent of the
time that's what they're doing
you know i am i and my dad uh... madder park in-line moisture
and he would always say the millet and all the guys taking ten percent you know
you guys were there but whatever you know i noticed a contingency takes more
than i start to worry about that feeling tickets and sell
you know i guess i guess phrased is consistent
it that seems to be the theory
that and
that people are pretty much like trade but
they seem to basically maintain the reading in a very consistent and polite
manner
yet though the
peppered back with a rationale that everybody
uh...
it back what i what i covered
another one of his rating gandalf last year which involved the reading of
municipal bond
service arching
which is like an incredibly boring thing but
yet uh... uh... the lawyers to the defense in that case
their thereof
*** argument was
we're the expert what when will you call a plumber uh... to come to your house
and to do which are but your house
but he gives you a bill
uh... for how much it cost
you don't know
how much that job was really worth you have to rely on him to tell you what the
quit the cost was
um...
so therefore if we tell you that the cost of this attack
and that's what the cost is because where the expert
uh... and and for that
that's kind of the argument with all the stuff it's like well you know if golden
express
uh... you don't know any better we do uh... encircle uh... or if interest rate
for this price
that's what it isn't just live with it i think that
that's kind of the um... that's kind of a mentality and at that again at the
foot
bottle hard thing to explain to people
uh... it's it's really it's incredibly uh... other book galling that they that
they come up with this attitude and they really do believe that uh... that that
that's the case
was interesting because what it really does in many respects is that they look
good you know
what is the price of gold well uh... you know it's worth whatever people are
willing to pay for it
and what we're seeing if this is this is just like
it's worth whatever people are paying for it but it's really not worth that
it's worth whatever buddy
other people or claiming to pay for it at that point right
and rates it's basically of the the one thing that the you know i walk away from
this isn't it puts complete lied to the fallacy of of them were of a true market
in any context
because this is not this is not in any way
uh... you know adat sits
well people will pay what they will pay for it yes
and maybe they'll pay more if there are told that other people whether it's true
or not
mean more for it it you know
or next door whatever you know and it's a photo premiered at the back we will
revert back to work
period that where it is but you'd about and bucknell
uh... and i've
but i wanted to go buy a watermelon the three
uh... it
if i went out
anywhere in the studio at any given day and went to go buy a watermelon it would
be the famed price ever ever ever were in the philly because all the different
mafia groups got together every morning admitted sided with the proforma going
to be that day
would i pay that price yeah probably
uh... but before the real free market if everybody was if there were people who
are allowed the fella for less
could have got nowhere more for less
but and but if not
building anymore info kept the price is what people are what the market will
bear a cabana pay that
that cost
um...
but on the other fans
it's not a real free market prices could hit the floor
that's kind of the famed situation that that oversimplified
look at this
uh... but
if you're getting together and you're cool looting
that everybody is reporting at certain price
uh... band
that were not inappropriate
and means
i guess another three take away from this is a word just dealing with a huge
cartel in in in in there just seems to be mass of the anti-trust issues here
that we will never ever get to
in this case is to you know uh... the collateral consequences
uh... you noted in your piece that lanny breuer
uh... went back i think the covington
nha whatever his world
biji early yahoo which is where he have from whence he came as the dow holder
all working on these cases
on the other side of these cases although i'm not convinced he was
working on a difference i do is at the department of justice but
uh...
this note this concept of collateral consequences and it's basically just
yahoo which it wasn't just outlined that for us because
i mean we've seen in the context of though
old mortgage fraud and it really just seems to come accross everything
yet so it wasn't going to cut across everything uh...
it's funny this
this whole idea
it's back
we are really long time uh... eric holder actually wrote a memo about this
back what you think the clinton white house
and the toughest part
uh... and
it was just repetition paper and if going down
quote-unquote holder memo
uh... andrew the the whole idea was what we do when we wired we have a a big
company that employs a lot of people um...
itself into trouble
uh... weekly as if if we are worried
about innocent people losing their jobs
if we charged the company criminally you we have other options
uh... and his answer was yes we do we can do other things we can charge it we
can
find them
uh... weekend
uh... person
deferred prosecution agreements we can do and beyond just charging them
criminally
and it didn't catch on right away it it did really caught on after the arthur
anderson
uh... the buckle
when the
going to charge that company criminally and and it went up and spokane twenty
eight thousand jobs were lost
and from that point forward
the justice department was really
shaadi of that
charging companies criminally and lots of companies but individuals and
companies
uh... because of this supposedly rationale
that there are there's collateral damage
if we do it that innocent people are gonna suffer
people who have jobs of these companies
which make it a little bit of fence but
not completely
uh... you can
the why they wouldnt charter company
criminally but why dot individuals white-out these traders were were
monkeying with world rates for officially
uh...
that collateral consequences
he started to come weight
at what happened
yelling stumped you issue mug somebody on the street and you go to kill
uh... your family's consent for
but we don't we definitely don't see that that concept of collateral
consequences in any other field other then of the
is that protects ordered these
corporate uh... corporate entities i mean
uh... it's also
i think what we're seeing now is sort of the caissons of of that that
clara consequences doctrine in terms of
uh... preventing people from
sir re engaging in these uh...
these accidents
vinod uh... day on a day-to-day in on the other day i mean more to come
mortage companies doing the exact same thing that they just settled
well with the government to fertility personally and and they're not
dierdre adjusted we've seen the banks do the same type mortgage fraud
uh... in this dish seems to be when we talk about moral hazard this is just
it's crazy
uh... it
their exaggerated not just
budget uh...
the financial industry
well last year they their word
there were three massive
uh...
battlements the big pharma
industry uh...
overwriting u
uh... one with classic lactose smithkline and then there was abit uh...
and i wasn't there when i get river which when i was but they um... they all
they'll settle for huge amount of money and and there were no criminal penalties
i and aidid
this looks like the new template for how we deal with
with big politically influential uh... corporate doers
uh... and the problem is that
it uh... it the problem is that what happened the first time
but uh... when they get caught it is the real problem comes out of a defect in
the second time
when they when they violated again or what do you do
uh... you eucalyptus
you get to do it again everything you can't have a uh... a conflict both the
did the whole idea is that these the first don
criminal action this was to be like a warning
but they're not
they're not taking that next step
uh... and so it's becoming a foot of the execution allies
costs of doing business
uh... saying
where everybody knows nobody goes to jail
and
and noted better to properly at all
straight